With monthly rent payments on the rise, you may think you just have to pay the increase, or move to a less expensive place. But here are a few things to consider before you sign another rental agreement. If you're letting misconceptions about buying a home keep you locked into renting, ignore these myths and focus on the facts.
Myth:
You need a 20% down payment to qualify for any mortgage loan product.
Fact:
-With a Fannie Mae HomeReady loan, the minimum is 3% down (for qualifying borrowers)
-With a FHA loan, the minimum down payment is 3.5% (for qualifying borrowers)
-With USDA and VA loans, you can get 100% financing (no money down) (for properties an/or borrowers who qualify).
-With a conventional loan, you may qualify for as little as a 3% down payment.
Myth:
It's not worth it if you plan to move after a few years.
Fact:
It only takes a few years to build equity and only a few years as a homeowner may be more beneficial than renting for the same period of time.
Myth:
You need great credit to get approved for a loan.
Fact:
In some cases, borrowers may be eligible for loan approval without a great credit score.
There are lots of factors involved in mortgage loan approval. Credit score is only one factor. So talk to a mortgage lender and get the FACTS as they apply to you.
If you'd like a referral to some great lenders, please ask me and I'll be happy to share some names and numbers.
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